By:  Harris                                            S.B. No. 888
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to electronic filing of records with a county clerk.
 1-2           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-3           SECTION 1.  Chapter 191, Local Government Code, is amended by
 1-4     adding Section 191.009 to read as follows:
 1-5           Sec. 191.009.  ELECTRONIC FILING AND RECORDING.  (a)  A
 1-6     county clerk may accept instruments by electronic filing and record
 1-7     the instruments electronically if the filing or recording complies
 1-8     with the rules adopted by the Texas State Library and Archives
 1-9     Commission under Chapter 195.
1-10           (b)  An instrument that is filed electronically in compliance
1-11     with the rules adopted under Chapter 195 is considered to have been
1-12     filed in compliance with any law relating to the filing of
1-13     instruments with a county clerk.
1-14           SECTION 2.  Subtitle B, Title 6, Local Government Code, is
1-15     amended by adding Chapter 195 to read as follows:
1-16             CHAPTER 195.  ELECTRONIC FILING OF RECORDS WITH AND
1-17                          RECORDING BY COUNTY CLERK
1-18           Sec. 195.001.  DEFINITIONS.  In this chapter:
1-19                 (1)  "Commission" means the Texas State Library and
1-20     Archives Commission.
1-21                 (2)  "Director and librarian" means the executive and
1-22     administrative officer of the Texas State Library and Archives
1-23     Commission.
1-24           Sec. 195.002.  ADOPTION OF RULES.  (a)  The commission shall
 2-1     adopt rules by which a county clerk may accept instruments by
 2-2     electronic filing and record instruments electronically under
 2-3     Section 191.009.
 2-4           (b)  The rules must provide for:
 2-5                 (1)  the electronic filing with and recording by the
 2-6     county clerk of:
 2-7                       (A)  real property records; and
 2-8                       (B)  except for records maintained under Section
 2-9     192.006, other instruments filed with and recorded by the county
2-10     clerk as determined by the commission;
2-11                 (2)  the means by which an instrument may be
2-12     electronically transmitted to a county clerk for filing;
2-13                 (3)  the means by which a county clerk may
2-14     electronically record an instrument filed electronically;
2-15                 (4)  requiring that the means adopted under Subdivision
2-16     (2) or (3)  be generally available, nonproprietary technology; and
2-17                 (5)  security standards to prevent the filing and
2-18     recording of fraudulent instruments or alteration of instruments
2-19     that were previously filed and recorded electronically.
2-20           (c)  Rules adopted by the commission under this section that
2-21     permit the use of digital signatures in the electronic filing of
2-22     instruments with the county clerk must be, to the extent
2-23     practicable, consistent with rules governing digital signatures
2-24     adopted by the Department of Information Resources under Section
2-25     2054.060, Government Code, as added by Chapter 528, Acts of the
2-26     75th Legislature, Regular Session, 1997.
 3-1           (d)  Before adopting or amending a rule under this section,
 3-2     the commission shall consider the recommendations of the Electronic
 3-3     Recording Advisory Committee established under Section 195.008.
 3-4           Sec. 195.003.  PERSONS AUTHORIZED TO FILE ELECTRONICALLY.
 3-5     The following persons may file documents electronically  for
 3-6     recording with a county clerk that accepts electronic filing and
 3-7     recording under this chapter:
 3-8                 (1)  an attorney licensed in this state;
 3-9                 (2)  a bank, savings and loan association, savings
3-10     bank, or credit union doing business under laws of the United
3-11     States or this state;
3-12                 (3)  a federally chartered lending institution, a
3-13     federal government-sponsored entity, an instrumentality of the
3-14     federal government, or a person approved as a mortgagee by the
3-15     United States to make federally insured loans;
3-16                 (4)  a person licensed to make regulated loans in this
3-17     state;
3-18                 (5)  a title insurance company or title insurance agent
3-19     licensed to do business in this state; or
3-20                 (6)  an agency of this state.
3-21           Sec. 195.004.  NOTICE OF CONFIRMATION.  (a)  A county clerk
3-22     that accepts electronic filing and recording under this chapter
3-23     shall confirm or reject an electronic filing of an instrument not
3-24     later than the first business day after the date an instrument is
3-25     filed.  Notice under this section must be made:
3-26                 (1)  by electronic means if possible; or
 4-1                 (2)  if notice under Subdivision (1) is not possible,
 4-2     by telephone or electronic facsimile machine.
 4-3           (b)  If the county clerk fails to provide notice of rejection
 4-4     within the time provided by Subsection (a), the instrument is
 4-5     considered accepted for filing and may not subsequently be
 4-6     rejected.
 4-7           Sec. 195.005.  TIME INSTRUMENT CONSIDERED FILED OR RECORDED.
 4-8     An instrument that is recorded electronically under this chapter is
 4-9     considered to be recorded in compliance with a law relating to the
4-10     recording of instruments as of the county clerk's business day on
4-11     which the instrument is filed electronically.  An instrument filed
4-12     electronically under this chapter must be recorded as timely as an
4-13     instrument filed by any other means.
4-14           Sec. 195.006.  ADDITIONAL FEE PROHIBITED.  The fee to file or
4-15     record an instrument electronically under this chapter is the same
4-16     as the fee for filing or recording the instrument by other means,
4-17     and a county clerk may not charge an additional fee for filing or
4-18     recording an instrument electronically under this chapter.
4-19           Sec. 195.007.  ACCESS TO INSTRUMENT RECORDED ELECTRONICALLY.
4-20     (a)  An instrument filed or recorded electronically must be
4-21     available for public inspection in the same manner and at the same
4-22     time as an instrument filed or recorded by other means.
4-23           (b)  The county clerk shall provide a requestor, as defined
4-24     by Section 552.003, Government Code, of an instrument filed or
4-25     recorded electronically under this chapter with electronic copies
4-26     of the instrument in a form that is capable of being processed by
 5-1     the use of technology that is generally available and
 5-2     nonproprietary in nature.  The county clerk shall provide the
 5-3     copies to the requestor at the cost of producing the copies in
 5-4     accordance with Section 552.262, Government Code.
 5-5           Sec. 195.008.  ELECTRONIC RECORDING ADVISORY COMMITTEE.  (a)
 5-6     The Electronic Recording Advisory Committee shall be appointed as
 5-7     required by this section to recommend to the commission initial and
 5-8     subsequent rules to be adopted under this chapter.
 5-9           (b)  The committee consists of:
5-10                 (1)  the following persons appointed by the director
5-11     and librarian:
5-12                       (A)  one person who is employed by or is an
5-13     officer of a title insurance agent or title insurance company;
5-14                       (B)  an officer or employee of a federal
5-15     government-sponsored entity;
5-16                       (C)  a person who as a usual business practice
5-17     obtains copies of recorded instruments from a county clerk to
5-18     maintain an abstract or title plant; and
5-19                       (D)  a public representative;
5-20                 (2)  two persons who are county judges or county
5-21     commissioners appointed by the County Judges and Commissioners
5-22     Association of Texas;
5-23                 (3)  four county clerks appointed by the County and
5-24     District Clerks' Association of Texas;
5-25                 (4)  three persons who are employed by or officers of
5-26     different title insurance agents or companies appointed by the
 6-1     Texas Land Title Association;
 6-2                 (5)  the presiding officer of the Title Insurance
 6-3     Subcommittee of the Real Estate, Probate, and Trust Law section of
 6-4     the State Bar of Texas or the functional equivalent of that
 6-5     subcommittee;
 6-6                 (6)  the attorney general or a person designated by the
 6-7     attorney general;
 6-8                 (7)  the comptroller or a person designated by the
 6-9     comptroller;
6-10                 (8)  the executive director of the General Services
6-11     Commission or a person designated by the executive director;
6-12                 (9)  the executive director of the Department of
6-13     Information Resources or a person designated by the executive
6-14     director; and
6-15                 (10)  the director and librarian or a person designated
6-16     by the director and librarian, who also serves as presiding officer
6-17     of the committee.
6-18           (c)  A member of the committee serves a term of two years
6-19     that expires on August 31 of each odd-numbered year.
6-20           (d)  A vacancy in the membership of the committee is filled
6-21     in the same manner as the initial appointment and is for the
6-22     remainder of the unexpired term.
6-23           (e)  A meeting of the committee is at the call of the
6-24     presiding officer and is subject to Chapter 551, Government Code.
6-25           (f)  A member of the committee is not entitled to
6-26     compensation or reimbursement of expenses from the commission for
 7-1     serving on the committee.  A member of the committee who is an
 7-2     employee or officer of a state agency is entitled to compensation
 7-3     and reimbursement of expenses for service on the committee as
 7-4     determined by the state agency of which the member is an officer or
 7-5     employee.  Chapter 2110, Government Code, does not apply to the
 7-6     committee.
 7-7           SECTION 3.  (a)  The entities entitled to make appointments
 7-8     to the Electronic Recording Advisory Committee established under
 7-9     Section 195.008, Local Government Code, as added by this Act, shall
7-10     make the appointments not later than November 1, 1999.  The terms
7-11     of the initial members of the Electronic Recording Advisory
7-12     Committee expire August 31, 2001.
7-13           (b)  The Electronic Recording Advisory Committee shall make
7-14     its recommendations for the initial adoption of rules under Chapter
7-15     195, Local Government Code, as added by this Act, not later than
7-16     September 1, 2000.
7-17           (c)  The Texas State Library and Archives Commission shall
7-18     adopt rules to implement Chapter 195, Local Government Code, as
7-19     added by this Act, not later than January 1, 2001.
7-20           (d)  Not later than December 31, 2000, the Electronic
7-21     Recording Advisory Committee shall make written recommendations on
7-22     statutory changes necessary to allow for digital signatures on real
7-23     estate transactions and the electronic filing and recording of
7-24     instruments executed by digital signature.  The committee shall
7-25     send the recommendations to the lieutenant governor, the speaker of
7-26     the house of representatives, and the Texas State Library and
 8-1     Archives Commission.
 8-2           SECTION 4.  The importance of this legislation and the
 8-3     crowded condition of the calendars in both houses create an
 8-4     emergency and an imperative public necessity that the
 8-5     constitutional rule requiring bills to be read on three several
 8-6     days in each house be suspended, and this rule is hereby suspended,
 8-7     and that this Act take effect and be in force from and after its
 8-8     passage, and it is so enacted.